The State Railway of Thailand (SRT) on Thursday signed an agreement with its asset development subsidiary to manage its assets and generate income through various land development projects.
It will now start transferring its assets to SRT Asset Co, which was registered on April 30, SRT governor Nirut Maneephan said.
To start, the SRT will hand over 75 contracts worth 1.64 billion baht to the subsidiary and the transfer is expected to be completed by the end of next month, he said.
"The assets will be transferred gradually and we expect all 12,839 contracts worth 3.16 billion baht to be transferred by the middle of next year," he said.
According to Mr Nirut, the agreement marks the beginning of asset management reform within the debt-ridden SRT in line with a cabinet resolution in September last year.
It is hoped the subsidiary will generate revenue for the SRT in compliance with the rehabilitation plan approved by the State Enterprise Policy Commission, he said. According to Mr Nirut, the subsidiary can also initiate asset development projects such as leasing or purchasing land plots for development or joint developments with partners to help the state enterprise reverse its losses and build financial stability.
The agreement signing between Mr Nirut and SRT Asset Co's acting manager general Traithip Siwakritkul was witnessed by SRT board chairman Jirut Wisanjit and SRT Asset chairman Amnuay Preemonwong.
